Hindustan Copper Plunges 7% as Govt Launches Discounted Stake Sale

Hindustan Copper shares plummeted by nearly 7% on August 25 after the Indian government launched an Offer for Sale (OFS) to divest up to a 6% stake in the company at ₹514 per share, representing a discount of around 10.5% from Monday's closing price of ₹574.15.

The discounted OFS price triggered selling pressure, causing Hindustan Copper shares to underperform the broader market as investors assessed the additional equity supply.

According to the details of the OFS, the government will initially sell a 3% stake in Hindustan Copper, with an additional 3% green shoe option available if the issue is oversubscribed. The floor price is set at ₹514 per share, and the retail allocation accounts for 10% of the offer.

Existing shareholders should monitor the final subscription levels, allotment price, and post-OFS trading behavior before assessing whether the selling pressure is temporary or signals a broader change in investor sentiment.